v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Investments
The Company's investment assets are carried at fair value on the consolidated balance sheet in accordance with the Fair Value Measurements and Disclosures Topic in the ASC. They are valued with assistance from a third-party trustee and consist of exchange-traded funds, corporate bonds, asset-backed securities, government securities, and short-term time deposits. The exchange-traded funds are valued at quoted market prices determined in an active market, which are Level 1 inputs.

The corporate bonds, asset-backed securities and government securities are valued using broker quotes that utilize observable market inputs, which are Level 2 inputs. The carrying amounts of time deposits, which are reported in the consolidated balance sheet using Level 2 inputs, approximate fair value due to their short-term nature. Unrealized losses as of June 30, 2026, and June 30, 2025, were not material. The Company believes any impairment of investments held with gross unrealized losses to be temporary and not the result of credit risk.

The Company's investment assets are carried at fair value on the consolidated balance sheets, within the line items short-term investments and other long-term assets, as summarized in the following table.
June 30, 2026December 31, 2025
(Dollars in Millions)
Level 1Level 2TotalLevel 1Level 2Total
Exchange-traded Funds
$6 $— $6 $5 $— $5 
Time Deposits— 375 375 — — — 
Corporate Bonds— 75 75 — 82 82 
Government Securities— 72 72 — 71 71 
Asset-backed Securities
— 23 23 — 29 29 
Total Investments at Fair Value
$6 $545 $551 $5 $182 $187 

The Company's debt securities include corporate bonds, government securities and asset-backed securities. The fair values of these securities totaled $170 million as of June 30, 2026, and $182 million as of December 31, 2025, and the amortized costs totaled $172 million and $181 million, respectively. All investment assets other than exchange-traded funds have stated contractual maturity dates as summarized in the following table:
(Dollars in Millions)
June 30,
2026		December 31,
2025
Less than 1 year
$383 $5 
1 - 5 years
89 94 
5 - 10 years
40 42 
Greater than 10 years
33 41 
Total Investments at Fair Value$545 $182 
NOTE 9.    Fair Value Measurements, continued

Long-term Debt
Long-term debt is reported at carrying amount on the consolidated balance sheets and is the Company's only financial instrument with a fair value significantly different from its carrying amount. The fair value of a company's debt is a measure of its current value under present market conditions, but does not impact the financial statements under current accounting rules. The majority of the Company's long-term debt is valued with assistance from a third party that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the third party, the fair value has been estimated by applying market rates of similar instruments to the scheduled contractual debt payments and maturities. These market rates are provided by the same third party. All of the inputs used to determine the fair value of the Company's long-term debt are Level 2 inputs.

The fair value and carrying value of the Company's long-term debt is as follows:
(Dollars in Millions)
June 30,
2026		December 31,
2025
Long-term Debt (Including Current Maturities):
Fair Value$17,159 $17,305 
Carrying Value18,864 18,873 

Interest Rate Derivatives
The Company’s fixed-to-floating swaps are carried at fair value, which is determined with assistance from a third party based upon pricing models using inputs observed from actively quoted markets. All of the inputs used to determine the fair value of the fixed-to-floating interest rate swaps are Level 2 inputs. The fair value of the Company’s fixed-to-floating interest rate swaps was an asset of $13 million and $23 million (for swaps entered in 2025 and 2023), and a liability of $94 million and $87 million (for swaps entered in 2022) as of June 30, 2026, and December 31, 2025, respectively.

Changes in interest rates no longer impact the fair value of the Company’s forward starting interest rate swaps because they are fully settled. See Note 7, Debt and Credit Agreements, for further information.